S&P 500 Gaps Down As 50DMA Taken Out

Volume is further picking up as Financials move to the worst spot (down over 3%). ES is down 2.5% and has just taken out the 50DMA as the Dow is down over 300pts. HYG remains a significant underperformer but equities look like they are playing catch up finally to credit markets - short-term target 1166 for S&P 500 given current HY levels.

This is very clearly a broad risk-asset sell-off as AUD is now down 2% on the day and commodities are getting crushed (Gold $1690).

Agree with the sentiment Cdad on the silver but I wouldn't bet on silver going up when JPM just moved an immense amount of silver into its registered category. I cannot help but think they may be lining up the big guns to break silver below 30 if they can. They didn't take all that silver without being in emergency mode. Liquidation first, and if that is stopped then light volume for manipulation. First Notice on 30th of Nov. If I was them I'd use this slide to break the silver markets back before I was on the hook for massive Dec deliveries. On the other hand it might finally break, but if it does it will be becuase the banks have lost control, and I don't think they have ... yet.

Virtually no one will be willing to sell physical if the paper price goes down that low. Plus we'll see premiums explode, just as we have the last couple pullbacks. If paper goes below ~1350 with an imploding Euro it will (finally) be the decoupling event.

There comes a day when all the previous assumptions, about bailouts for everyone, everywhere and forever, come crumbling down. And all the positions based on that assumption have nothing but air underneath

I have been asking this question for weeks. I am just going under the premise that everything we are seeing is a bullshit smoke screen. Eventually reality will win out and you won't have to be asking that question anymore.

People are clamoring into the dollar. The same thing happened in 2008. The dollar is the destination of choice for money managers during a "flight to safety." Do not be concerned though. I would use this opportunity to buy gold at a better price as it will continue to outperform in the long run as central banks continue to devalue in the race to the bottom.

This is like watching a drunk stumble around and stumble around but never fall down. It's like some weird inner gyroscope keeps kicking in just before he does a face plant on the pavement. It's tedious. The markets haved tuned into weebles.

Until proven wrong, my conviction is that precious metals will crash and burn like equities.

DEFLATION means many will sell their holdings to raise cash...since Gold and Silver are assets being held by many who also hold EU soverign bonds, margin calls will force sales of gold and silver to raise cash. CASH is KING in a deflationary storm.

My prediction still holds: Gold at $490 and Silver at less than $2 by the time this deflationary storm ends.....first paus will be this time next year and then flush to a bottom in 2016 or 2017.

So you should be willing to short gold comfortably at $1200 or so. Where can I sign up?

You can have deflation of assets and inflation of staples concurrently. What do you think has happened in the past 3 years? As money...er...fiat velocity increases, staples increase in price, and consumers have to funnel more money to perishables, and less to servicing assets. Thus you get both asset deflation and (hyper) inflation at the same time.

The flaw in your thinking is you view Au and Ag as assets. They are wealth stores, aka MONEY. Once you're over that apparently difficult intellectual hurdle, we'll accept your repentent comments. :D